'The financial position is grim' - Hartlepool Borough Council warning ahead of 'difficult decisions around cuts and council tax

Hartlepool Borough Council officers have outlined how there is currently a £5.583million “bottom line gap” expected to need addressing for the 2024-25 financial year from next April..

The authority’s finance and policy committee heard this could yet change further as they deal with issues such as rising social care demands, the increase in national living wage and energy inflation.

James Magog, council director of finance, IT and digital, said: “Clearly the financial position facing the council, like many others, is grim.

“I would urge all members to recognise the severity of the position when it comes to making decisions on council tax and the savings proposals presented, both now and in the future.”

Final decisions on council tax in Hartlepool will be made in January following the provisional local government finance settlement is confirmed.

Officers noted a potential council tax increase in line with government referendum limits, which are expected to be 2.99% for core council tax and a further 2% adult social care precept, would reduce the gap to £3.149million.

Meanwhile £1.792million of saving proposals have been drawn up which are to be considered by policy committees.

Councillor Mike Young, the leader of the council leader, said they need to “focus quite clearly” on what the budget position means for the future, adding it forces a “sharpening of the minds”.

Councillor Brenda Harrison, Labour’s group leader, said the financial challenges stem from “a lack of funding over a lot of years” from the Government and that residents “are paying for it, literally”.